Colonel Michael McGinley 30 August 2017 Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

“A lively experiment” Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

DIUx accelerates commercial innovation for national defense Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

Commercial R&D Outpacing Federal R&D: > 3 to 1 ($bn) DIUx Value Space Source: National Science Foundation, National Center for Science and Engineering Statistics (NSF/NCSES), National Patterns of R&D Resources (annual series) Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

Breakthrough Innovations Relevant to DoD Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

DIUx Focus Areas Artificial Intelligence Human Systems Information Technology Autonomy Space Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

How DIUx Works The toughest DoD problems… are given to DIUx’ers with diverse backgrounds… …to find, pilot, & transition commercial solutions Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

We Harness Innovation Across the U.S. 520+ co.’s in 39 states competed for DIUx contracts 4 Offices (SV, Boston, Austin, DC) 48 Staff (11 civilian, 26 military, 11 contractors) Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

47PILOT CONTRACTS 101 MILLION DOLLARS 60-90 DAYS TO SIGN $1.8 bn of VC Success Stories 47PILOT CONTRACTS 101 MILLION DOLLARS 60-90 DAYS TO SIGN $1.8 bn of VC Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

Silicon Valley. Boston. Austin. Washington, D. C Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

Silicon Valley. Boston. Austin. Washington, D. C Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

Silicon Valley. Boston. Austin. Washington, D. C Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

Silicon Valley. Boston. Austin. Washington, D. C Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

“I enthusiastically embrace it.” “[DIUx] will grow in its influence on the Department of Defense.” – Secretary of Defense James Mattis, at DIUx on 10 August 2017 Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

Questions? Work with Us: questions@diux.mil https://diux.mil/ Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

ADDITIONAL SLIDES Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

How Traditional Defense Companies Can Work with DIUx One or more non-traditional defense companies must: Supply key technologies or products; or Accomplish a significant amount of the effort; or Cause a material reduction in the cost or schedule or increase in performance. OR Enter into a one-third cost share (contributions of cash or non-cash items) IRAD may count towards this requirement Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

Customer Support “DIUx’s expertise in and knowledge of the nontraditional innovation ecosystem is unique in the Department, and has been a critical enabler for USSOUTHCOM to remain the security partner of choice for nations in the Western Hemisphere.” Admiral K.W. Tidd, U.S. Southern Command “DIUx’s expertise in 3rd offset technology, coupled with startup company’s sense of urgency and efficient use of contracting and resources has created an extremely effective method for NSW to gain knowledge and accelerate cutting edge solutions into the hands of my Naval Special Warfare operators.” Rear Admiral Tim Szymanski, Naval Special Warfare Command Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release

VS Commercial Solutions Opening (CSO) VS. Federal Acquisition Regulations (FAR) CSO Simple diux.mil solicitation <60 days to award Unprotestable award Negotiable payment milestones Negotiable terms/conditions Negotiable IP/data rights Commercial accounting standards Sole source justification for follow on procurement FAR Complicated fbo.gov solicitation 18+ months to award Protestable award Set payment milestones Gov’t terms/conditions required Stringent IP/data rights DCAA accounting standards Sole source procurement difficult VS Silicon Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017 Proprietary Sensitive - Not for Public Release